say im interested in real estate?

Question

what would be a good start, where can i learn? I have 25k in bank account, will i need that money? just would like any information

Answer 1

Well I agree with everyone who says stay in the lower end properties. However, I'll take you even a step further.

Buy low and sell higher...

Go drive around and find some "beat up" houses. Find the owners, contact them (letters, phone calls, etc.).

Low ball offer, but hey you can pay CASH!

if you buy one for $10k, then sell it for $15k.

You get the idea, there is more involved (repair estimates, checking market values, etc,)

But this is one way to use your money and get a good return, and get started in real estate.

To answer your 2nd question... no you really don't even need the $25k to do what I just said, but it makes it a lot easier. You can always do an assignment of contract.

You put a house under contract for $10k, then assign it to a new buyer for $5k, the nw buyer buys the house for $10k plus the $5k assignment fee to you. Results, you made $5k for finding a deal and passing it on to someone else.

Just my 2 cents.

JB

Answer 2

e_barker is correct but i will go one farther. As real estate prices skyrocket, inner city properties are not always so positively affected. The best way to invest in real estate is to avoid the glamor properties and buy the necessary. Inner city properties can be difficult to manage but are worth it. Buy boarded up row houses in bad neighborhoods near central business districts. Particularly where there is a strong need for affordable rental housing. With your cash you could easily swing the down payment and closing with money left over to fix the place up. Make the place livable and safe with no luxuries. you will be able to rent to the local housing authority for needy families and will often get higher than market rent for a rough neighborhood. The housing authority will take care of all the issues and you will have a source of income for as long as you need it. The rent will likely pay for the purchase price in less than 10 years and you can hold it as long as you want.
If the area is close to down town it will likely appreciate eventually and you can hold the property until the next big up-turn in the market and sell for a significant profit which will allow you to invest in other non-glamorous high income properties, like warehouses.

Answer 3

Stay away from real estate, unless you are in Japan or Germany. The prices are way too high... Also, $25k in the bank is not nearly enough to start...

Answer 4

Don't listen to the first response guy. I have worked in property mangement for five years. The properties I work at are college high-rise properties, and they make a huge amount of profit. However, if you wanted to start small do what my friends and I do get a little bit of money buy a run-down house and fix it up, we do all the work ourselves. Then flip it.

Answer 5

You cannot buy a house with $25,000.00 USD!